India rubber prices hit record high on overseas rally

Monday, 10 January 2011 00:15 - - {{hitsCtrl.values.hits}}

Reuters: Natural rubber prices in India extended the previous session’s gains on Thursday to hit a new record high, tailing the rally in overseas markets spurred by a supply crunch, dealers and analysts said.

Tokyo rubber futures rose for a second consecutive day to a new record on Thursday on a strong US dollar and rising oil prices, dealers said.

At 2:14 p.m., the benchmark February contract NMRUG1 on India’s National Multi-Commodity Exchange (NMCE) was up 0.1 per cent at 22,185 rupees ($490.8) per 100 kg, after rising to 22,425 rupees, the highest level for the second-month contract.

At Kottayam spot market in Kerala, the most traded RSS-4 rubber (ribbed smoked sheet) was trading at a record 21,400 rupees per 100 kg, breaching earlier high of 21,200 rupees struck on Wednesday.

“Indian market is merely tracking international cues. Rubber prices are very high in the international market. There is room for domestic market to rise further,” Ibrahim Jalal, a member of the Indian Rubber Dealers Federation, told Reuters.

In Bangkok, Thailand, spot price was 23,753 rupees per 100 kg on Thursday.